Hold a board meeting and pass a resolution to close the company. Ensure that all directors are present or provide their written consent.
Inform HM Revenue and Customs (HMRC)
Notify HMRC that the company is closing by submitting the necessary forms. This includes filing the final statutory accounts and a final Company Tax Return. You may also need to settle any outstanding tax liabilities.
Inform Companies House
File the necessary forms with Companies House to officially dissolve the company. The specific forms required depend on the company’s structure, whether it is a limited company, limited liability partnership (LLP), or another type of business entity.
Settle outstanding obligations
Ensure that all outstanding debts, taxes, and liabilities are settled. This includes paying any outstanding invoices, loans, employee wages, and other obligations.
Distribute remaining assets
If there are any remaining assets or funds in the company, distribute them appropriately. This may involve paying off shareholders, transferring assets to another company, or converting them to cash.
Notify employees, shareholders, creditors, and other stakeholders about the company’s closure. This includes providing redundancy notices to employees if necessary.
Cancel business contracts and licenses
Cancel any active contracts, leases, insurance policies, or licenses associated with the company.
Dissolve the company
Submit the necessary application to Companies House to request the dissolution of the company. This can usually be done online or by filing the appropriate forms by mail.
Retain company records and documents for the required period of time as specified by the law. This includes financial records, tax documents, employment records, and other relevant paperwork.
It’s important to note that the process of closing a company may vary depending on the specific circumstances and legal requirements. It is advisable to seek professional advice from an accountant, solicitor, or company formation agent to ensure that you follow the correct procedures and meet all legal obligations.